{"id":1516,"date":"2019-12-25T23:57:53","date_gmt":"2019-12-25T22:57:53","guid":{"rendered":"https:\/\/www.getanewsletter.com\/en\/?p=1516"},"modified":"2024-04-11T17:39:53","modified_gmt":"2024-04-11T17:39:53","slug":"email-marketing-cost-roi","status":"publish","type":"post","link":"https:\/\/getanewsletter.com\/en\/blog\/email-marketing-cost-roi\/","title":{"rendered":"Email marketing cost and ROI"},"content":{"rendered":"\n<p><strong>If you&#8217;re just starting to use email marketing for your business, you are probably wondering &#8216;how much will email marketing cost me, actually?&#8217; and &#8216;what will be my return on investment from email marketing?&#8217; <\/strong><\/p>\n\n\n\n<p>In this post, we are going to discuss:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>What are the different costs involved in doing email marketing&nbsp;<\/strong><\/li>\n\n\n\n<li><strong>What is the ROI of email marketing&nbsp;<\/strong><\/li>\n\n\n\n<li><strong>How much should you spend on email marketing &#8211; and how much do successful companies spend on their newsletters on average;&nbsp;<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Email marketing cost &#8211;&nbsp;What are the different costs involved in doing email marketing?<\/h2>\n\n\n\n<p>There are a few factors that affect the cost of your email marketing campaigns per month:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>your <strong>email marketing tool subscription price<\/strong><\/li>\n\n\n\n<li>the <strong>number of contacts (subscribers)<\/strong> you have on your email list<\/li>\n\n\n\n<li>the&nbsp;<strong>number of emails&nbsp;<\/strong>you send per month<\/li>\n\n\n\n<li>the <strong>cost of creating your newsletter copy&nbsp;<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Email marketing tool subscription price<\/h3>\n\n\n\n<p>In order to use email marketing in your business, you need an email marketing tool that will allow you to send emails to several contacts safely at the same time, while still <a href=\"https:\/\/getanewsletter.com\/en\/features\/email-personalization\/\">personalizing<\/a> e.g. the greeting and email subject line.<\/p>\n\n\n\n<p>Also &#8211; as opposed to using Email Service Providers such as Gmail for sending your marketing emails, you will be able to design templates with images, your logo, links, and brand color &#8211; aka do much more than when you just send a &#8216;simple&#8217; email:<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" width=\"323\" height=\"772\" src=\"https:\/\/www.getanewsletter.com\/wp-content\/uploads\/sites\/2\/2019\/12\/e-commerce-template.png\" alt=\"e-commerce template\" class=\"wp-image-1496\" srcset=\"https:\/\/getanewsletter.com\/wp-content\/uploads\/2019\/12\/e-commerce-template.png 323w, https:\/\/getanewsletter.com\/wp-content\/uploads\/2019\/12\/e-commerce-template-126x300.png 126w\" sizes=\"(max-width: 323px) 100vw, 323px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Hence, getting an&nbsp;<strong>email marketing tool&nbsp;<\/strong>is a necessary investment if you want to do email marketing.<\/p>\n\n\n\n<p>Luckily, most email marketing tools won&#8217;t cost you much &#8211; especially if you have a small email list for starters.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An email marketing tool for a list of <strong>under 5,000 contacts won&#8217;t cost you more than $ 50<\/strong> on average.<\/li>\n\n\n\n<li>An email marketing tool for a bigger list &#8211; <strong>of up to 10,000 contacts<\/strong> &#8211; will still be <strong>within&nbsp; $100<\/strong> on average.<\/li>\n<\/ul>\n\n\n\n<p>As you can see &#8211; email marketing tool cost is a fairly insignificant expense compared to what you can make back from your newsletters (see the next paragraph).<\/p>\n\n\n\n<p>The pricing of your email marketing tool subscription<strong> depends<\/strong> mostly <strong>on the number of contacts you have<\/strong> on your email list &#8211; aka <strong>the number of your subscribers. The cheapest plans start from <a href=\"https:\/\/www.getanewsletter.com\/en\/pricing\/\" target=\"_blank\" rel=\"noopener noreferrer\">only $10 per month<\/a>.&nbsp;<\/strong><\/p>\n\n\n\n<p>Luckily,<strong> you can test if email marketing works for you<\/strong> <strong>before you start paying for it &#8211;&nbsp;<\/strong>as most email marketing tools offer a free plan.<\/p>\n\n\n\n<p>Get a Newsletter offers you<a href=\"https:\/\/www.getanewsletter.com\/en\/pricing\/\" target=\"_blank\" rel=\"noopener noreferrer\"> a free forever account for up to <strong>100 subscribers!&nbsp;<\/strong><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Does it make sense to send newsletters if you only have a small list?<\/h3>\n\n\n\n<p>Absolutely! Small lists are actually a lot more engaged and intimate &#8211; it&#8217;s as if the subscribers knew you themselves. Thus, small lists tend to have <strong>much higher <a href=\"https:\/\/getanewsletter.com\/en\/blog\/open-rates-statistics\/\" target=\"_blank\" rel=\"noopener noreferrer\">open rates<\/a><\/strong> and <a href=\"https:\/\/getanewsletter.com\/en\/blog\/newsletter-click-rates-statistics-good-click-rate-improve\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>click-through rates<\/strong> <\/a>than industry standards.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Does the number of emails you send affect your email marketing cost?<\/h4>\n\n\n\n<p>Most email marketing tools offer to send&nbsp;<strong>unlimited emails<\/strong> in their&nbsp;<strong>paid plans<\/strong> &#8211; so <strong>the number of emails you send<\/strong> (which can quickly add up &#8211; say, if you have 5000 subscribers and send 1 email per week &#8211; that&#8217;s already 20,000 emails per month!) <strong>doesn&#8217;t affect your email marketing cost.&nbsp;<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The cost of writing your newsletters<\/strong><\/h3>\n\n\n\n<p>Finally, a lot of businesses beginning their adventure with email marketing forgets about the &#8216;hidden&#8217; cost of actually writing your newsletters.<\/p>\n\n\n\n<p>If you&#8217;re writing them in-house &#8211; writing 2-4 newsletters per month will cost you 2-3 hours of your or your employee&#8217;s time. So &#8211; if you&#8217;re paying your marketing manager $ 50 per hour, <strong>writing newsletters in-house<\/strong> will add only about <strong>$100-150 to your email marketing cost.<\/strong><\/p>\n\n\n\n<p>If you <strong>outsource email marketing to an agency<\/strong> &#8211; your monthly newsletters will cost you around <strong>$ 300 &#8211; 500.&nbsp;<\/strong><\/p>\n\n\n\n<p>So, let&#8217;s sum things up:<\/p>\n\n\n\n<p><strong>Total email marketing cost per month (on average):<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>up to 5,000 contacts, in-house: <strong>$150-200<\/strong><\/li>\n\n\n\n<li>up to 5,000 contacts, agency: <strong>$350 &#8211; 550<\/strong><\/li>\n\n\n\n<li>5,000 &#8211; 10,000 contacts, in-house: <strong>$200-250<\/strong><\/li>\n\n\n\n<li>5,000 &#8211; 10,000 contacts, agency: <strong>$ 400-650<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">What is the ROI of email marketing<\/h3>\n\n\n\n<p>OK &#8211; now we&#8217;ve discussed<strong> how much email marketing will cost you<\/strong> &#8211; let&#8217;s see what you can make in return.<\/p>\n\n\n\n<p>According to Campaign Monitor&nbsp; &#8211; as of 2019, email marketing could yield you up to <strong>4300% Return on Investment.&nbsp;<\/strong><\/p>\n\n\n\n<p>That means that &#8211; for every&nbsp;$1 you spend on email marketing, you can get&nbsp;$44 back.<\/p>\n\n\n\n<p>Of course &#8211; the amount of money you can make off email marketing per month depends on your&nbsp;<strong>conversion rate&nbsp;<\/strong>(how many say, 100 potential leads &#8211; actually end up buying something from you), your <strong>margins, <\/strong>and how many newsletters you actually send.<\/p>\n\n\n\n<p>Read more <a href=\"https:\/\/getanewsletter.com\/en\/blog\/email-marketing-stats-2019\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>email marketing stats<\/strong><\/a> here!<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How much should you spend on email marketing?<\/h3>\n\n\n\n<p>Well, I can&#8217;t give you an absolute number &#8211; because how much you should spend depends on the <strong>size of your business and your marketing budget.<\/strong>&nbsp;But if you want some guidelines as to what successful marketers do, here&#8217;s a bunch of stats you can use as guidelines:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>According to Web Strategies Inc. &#8211; to achieve the top ROI from your email marketing efforts, you should spend around <a href=\"https:\/\/www.webstrategiesinc.com\/blog\/email-marketing-budgets-spend-this-much-on-email-marketing-for-122-roi\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>16% of your total marketing budget on emails.&nbsp;<\/strong><\/a><\/li>\n\n\n\n<li>According to smart insights &#8211;<strong> 82% of marketers<\/strong> spend <strong>between 16 and 20%<\/strong> of their total marketing budget on email marketing.<\/li>\n\n\n\n<li> Moreover, clients who end up <strong>buying after reading your newsletters spend 138% more than those that don\u2019t receive email offers. <\/strong>(Source:\u00a0JeffBullas)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">How much do successful companies spend on their newsletters on average?<\/h3>\n\n\n\n<p id=\"bbk-2jtz0\">While businesses are not readily bragging about this online, it&#8217;s been estimated that companies in the U.S. alone spent over 350 million dollars on email marketing in 2019 (Source:&nbsp;Backlinko)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Conclusion<\/h3>\n\n\n\n<p>As you can see from our calculations and stats above: email marketing is a cheap and scarily effective marketing channel. The value for money is so good that we&#8217;re surprised not everyone actually does it (how many times has a <a href=\"https:\/\/getanewsletter.com\/en\/blog\/email-marketing-restaurants-restaurant-newsletter-ideas-templates-ultimate-guide\/\" target=\"_blank\" rel=\"noopener noreferrer\">restaurant owner sent you a newsletter<\/a>, for example?)<\/p>\n\n\n\n<div class=\"wp-block-columns has-background is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\" style=\"background-color:#d1dce6\">\n<div class=\"wp-block-column is-vertically-aligned-bottom is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:65%\">\n<h2 class=\"wp-block-heading\" style=\"font-size:30px\"><strong>Get started with email marketing<\/strong><\/h2>\n\n\n\n<p class=\"has-large-font-size\">Create beautiful email newsletters for free with Get a Newsletter and reach your subscribers and customers in a heartbeat.<\/p>\n\n\n\n<p class=\"has-large-font-size\"><strong><a href=\"https:\/\/app.getanewsletter.com\/signup\/\"><span style=\"text-decoration: underline;\">Sign up for free<\/span><\/a><\/strong><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:35%\">\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/getanewsletter.com\/wp-content\/uploads\/2023\/04\/powerful-features-to-grow-your-business.png\" alt=\"Powerful features to grow your business\" class=\"wp-image-22065\"\/><\/figure>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>If you&#8217;re just starting to use email marketing for your business, you are probably wondering &#8216;how much will email marketing cost me, actually?&#8217; and &#8216;what will be my return on investment from email marketing?&#8217; In this post, we are going to discuss: Email marketing cost &#8211;&nbsp;What are the different costs involved in doing email marketing? [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":18230,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[10],"tags":[],"class_list":{"0":"post-1516","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-email-marketing","8":"entry"},"_links":{"self":[{"href":"https:\/\/getanewsletter.com\/en\/wp-json\/wp\/v2\/posts\/1516","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/getanewsletter.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/getanewsletter.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/getanewsletter.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/getanewsletter.com\/en\/wp-json\/wp\/v2\/comments?post=1516"}],"version-history":[{"count":0,"href":"https:\/\/getanewsletter.com\/en\/wp-json\/wp\/v2\/posts\/1516\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/getanewsletter.com\/en\/wp-json\/wp\/v2\/media\/18230"}],"wp:attachment":[{"href":"https:\/\/getanewsletter.com\/en\/wp-json\/wp\/v2\/media?parent=1516"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/getanewsletter.com\/en\/wp-json\/wp\/v2\/categories?post=1516"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/getanewsletter.com\/en\/wp-json\/wp\/v2\/tags?post=1516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}